Ever bought a cryptoasset making magic beans look like a sound investment? I have, so to institute some discipline in my altcoin investing process. I’ve developed an audit to help me avoid duplicating past mistakes. Many things can derail promising cryptoasset projects. Minimizing the risk of going to 0…

Properly Assessing and Managing these Risks is Critical to Your Success Five components of Risk Management: Code Audit Anti Fragile – gets stronger when stressed Low funding risk (fiat) Attack Risk Regulatory “An idea survives if it is a good risk manager, that is, not only doesn’t harm its holders,…

Depends on the Breadth and Depth of the Community Supporting it Five components of Engagement: Developer Adoption of Protocol Active commenting Reddit Long lasting ongoing discussions in Slack, Telegram, Discord, etc… Positive Twitter Sentiment Uptrend in Google trends This will be quick. Toss a couple of dollars to Earn.com users and…

No One Agrees on What It Means. You Should Still Try and Evaluate Its Various Dimensions Anyway. Five components of decentralization: Widespread developer contributions Roadmap for decentralized governance Lack of Concentrated Holders (via Wallets) Would function normally without creators Global Given the uncertainty inherent in cryptoasset investing decentralization is an…

Making Sure your Investments are Protected From the Malicious Actors Lurking on the Fringes of the Cryptosphere Five components of securability: High Volume of Nodes Systematic Approach to dealing with bugs The widespread distribution of miners / stakers Untiered rewards Easily Stored Securely Nodes for the purposes of this section…

Is Your Investment More Likely to Rise Up or Burn Down? Five components of scalability: Project leads can hire and develop Clearly defined roadmap to obtain a share of the market Outside Developer Interest in contributing Sustainable Burn Rate Geographically distributed Depending on how far along the project is there…

Hint: It’s not relentless marketing and constant feeding of hype cycles Five components of project evaluation: The project is live and has existing users Well written high-quality white paper Demonstrated understanding of the landscape of possible competitors, substitutes Unique Value Proposition Open Source When evaluating projects I want it to…

What Lurks Beneath the Surface Can Capsize you as a Cryptoasset Investor Five Components of Distribution: Insider skin in the game (allocations subject to vestings and lock ups reflecting their preferred status in obtaining tokens) Optimized for long-term usage of product Equitable token sale (at least 80% of tokens if…

Ignore This Reality at Your Peril as a Cryptoasset Investor Five components of Investability Disciplined Well Structured Capital Allocation Process Proven Natural Demand (adoption increasing over time) Mechanism to Capture Value Brand Defensibility When investing in something you want to make sure your money is well spent via a disciplined…